Finance & Audit Sub-Committee

Tuesday, 28 August 2001 at 3.00 pm

Present:  Councillors Calvert, Jackson, McCabe, O’Rourke and Rebecchi. 

Chair:  Councillor Jackson presided.

In Attendance:  Chief Executive, Mr G Douglas (for Director of Legal & Support Services), Mr C Struthers (for Director of Social Work & Housing Services) and Head of Accountancy Services.

Apologies:  Councillors Mitchell and Robertson (Y).

734

Progress on Audit Plan to 30 June 2001

734

There was submitted a report by the Chief Internal Auditor (1) advising of progress in the Audit Plan to 30 June 2001 and (2) setting out in detail the work undertaken on both a planned and unplanned basis.

Noted

735

1999/2000 Audit - Officer Action Plan

735

There was submitted a report dated 3 August 2001 by the Head of Accountancy Services advising of progress in respect of the 1999/2000 Officer Action Plan which was issued by the Council's External Auditors in June 2001.

Noted

736

2000/2001 Period 12 v Out-turn Comparison

736

There was submitted a report dated 6 August 2001 by the Head of Accountancy Services (1) highlighting those areas where there were significant variances between projections prepared at Period 12 (March 2001) and the 2000/2001 out-turn figures included in the draft accounts and (2) appending an action plan to address these issues.

Decided: that the action plan resulting from the Period 12 v out-turn comparison for 2000/2001 be noted.

737

Reconciliations Update - Quarter 1 2001/02

737

There was submitted a report dated 16 August 2001 by the Head of Accountancy Services on the current status of the main reconciliations carried out by Finance Services and Housing Services for Quarter 1 2001/02.  The report advised that the Council's External Auditors had commenced their audit of the 2000/01 accounts and had advised that, following review of the bank reconciliations for 2000/01, they were satisfied with the accuracy and quality of the reconciliations.

The Sub-Committee was advised that, subsequent to the issue of the report, further progress had been made in bringing up to date reconciliations within Housing Services.

Decided:

(1)   that the Sub-Committee welcome the information from the Council's External Auditors regarding the 2000/01 bank reconciliations;

(2)   that it be remitted to the Director of Social Work & Housing Services to take all necessary action to ensure that the 2001/02 Housing Services reconciliations are brought fully up to date at the earliest opportunity; and

(3)   that the current status of the 2001/02 reconciliations be otherwise noted.

738

Reappraisal of Local Tax Bad Debt Provision

738

There was submitted a report dated 3 August 2001 by the Head of Accountancy Services advising that the provisions for bad debt relating to the Community Charge and each of the eight completed years of Council Tax had been reviewed with the effect of increasing the General Fund balances by £2.5m.  It was noted that utilisation of £2.25m of these balances had been agreed when setting the 2001/04 Revenue Budget and that the provisions would be reviewed on an annual basis.

Decided: that the action taken in reviewing the Local Tax Bad Debt provisions and the impact on the General Fund balance be noted.

739

Issues Arising from Benefit Subsidy Claims

739

There was submitted a report dated 15 August 2001 by the Director of Social Work & Housing Services and the Head of Accountancy Services on issues arising from benefit subsidy claims.  The report advised that as part of the 2000/01 accounts closure, a number of issues had come to light in respect of benefit accounting, the net impact of which was to reduce the General Fund balance by £1.2m as at 31 March 2001 and that as these issues did not come to light until after the 2001/02 budget was set, it was estimated that the impact would be to increase the net expenditure by £400,000 in 2001/02.  The report further advised that a joint Action Plan had been agreed between Finance Services and Housing Services and that progress on the issue of reconciliations would be reported to the Sub-Committee as part of the quarterly controls update.

Decided:

(1)   that the reduction in General Fund balances as at 31 March 2001 be noted; and

(2)   that the Sub-Committee approve the Action Plan appended to the report and authorise the appropriate Officers to take all necessary action to mitigate the £400,000 estimated increase in net benefits expenditure in 2001/02.